Key Insights
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Significantly high institutional ownership implies Berkeley Group Holdings’ stock price is sensitive to their trading actions
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52% of the business is held by the top 8 shareholders
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
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If you want to know who really controls The Berkeley Group Holdings plc (LON:BKG), then you’ll have to look at the makeup of its share registry. With 88% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let’s delve deeper into each type of owner of Berkeley Group Holdings, beginning with the chart below.
See our latest analysis for Berkeley Group Holdings
What Does The Institutional Ownership Tell Us About Berkeley Group Holdings?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Berkeley Group Holdings. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Berkeley Group Holdings’ historic earnings and revenue below, but keep in mind there’s always more to the story.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Berkeley Group Holdings is not owned by hedge funds. First Eagle Investment Management, LLC is currently the company’s largest shareholder with 12% of shares outstanding. For context, the second largest shareholder holds about 9.5% of the shares outstanding, followed by an ownership of 6.5% by the third-largest shareholder.